At its first meeting in 2008, held in Libreville on 12 February, the National Monetary and Financial Committee was delighted with Gabon's sound economy. The country enjoyed 5% growth in 2007, external assets are in excellent shape and medium-term bank loans increased by between 10% and 15%.

The national monetary and financial committee met on 12 February in Libreville for the first of three meetings in the 2008 financial year. Chaired by Paul Toungui, the Finance Minister, the purpose of the meeting was to review the country's macroeconomic and banking situation in the course of 2007 and trace the economic outlook for the year in progress.

The committee stated that the country's economic activity was satisfactory in 2007 with good performances from the extractive industries and from the secondary and tertiary sectors. The country enjoyed 5% growth in 2007, external assets are in excellent shape and medium-term bank loans increased by between 10% and 15%.

The conclusions of this meeting also revealed an excess of 330 billion CFA francs in the execution of public finance budget in October 2007. The primary non-oil deficit was contained at 9.2% of the Gross Domestic Product Excluding Oil (GDPEO) for an annual maximum threshold of 11.6% of the GDPEO in the programme.

Lastly, the national monetary and financial committee proposed the adoption of monetary and credit objectives for the 2008 financial year. Furthermore, it approved Gabon's efforts to respect the four convergence criteria fixed by the Economic and Monetary Community of Central Africa (CEMAC) within the framework of the multilateral monitoring of the economies of the region. The only criterion not met was that of inflation.

Gabon's positive economic indicators, and these encouraging economic performances, are in contrast with a world economic context burdened by financial crisis and the spectre of an economic recession in the United States.

Source: Gabonéco, February 2008

Construction of the "Ecole des Mines" - School of Engineering in Franceville
On 17 March, President Omar Bongo Ondimba proceeded to officially launch the building work on the first School of Engineering - Ecole des Mines in Gabon at Franceville along with the building of Franceville cathedral and the new presidential palace.

The School of Engineering and applied Geology - “Ecole nationale des Mines et de Géologie appliquée” will be located in the suburbs of Franceville, within the same perimeter as an agronomics institute and a prestigious high school.

It will provide two and three years study courses to 250 to 300 higher technicians and engineers in the domains of mining and geology, currently trained in South Africa and in Europe. The establishment is expected to open for the 2010-2011 academic year.

For the minister of Higher education, Dieudonné Pambo, the future Ecole des Mines must prepare Gabonese students to take part in the exploitation of their country’s rich mining resources. “Gabon is a mining country. Future prospects include the exploitation of the iron seam at Belinga. We have also discovered iron and uranium deposits in different places. There is baratine, talk… all kinds of deposits contained in the subsoil of our country. This school will prepare us for a massive exploitation of resources”.

Since 1962, Gabon has been exploiting an important manganese deposit at Moanda, in the Haut-Ogooué (south-east), where production has increased from 1.9 million tonnes in 2000 to 3.2 million tonnes in 2007. The exploitation of iron from Bélinga, in the province of Ogooué-Ivindo (north-east) should create around 30,000 jobs.

The new presidential palace in the provincial village of Ménaille Epilla will replace the former palace, which will house the headquarters of the future regional doctoral school. As for the future cathedral of Franceville, it is being built in the centre of the town.

These three buildings are part of the programme to decentralise the infrastructures for the basic development and modernisation of inland territory in order to boost economic and social activity.

>> Also read the article on manganese energy reserves: (Pdf 855k)

"Thanks to one of the largest deposits of high quality manganese on the planet, the country takes advantage of the growth in the iron and steel industry. The record production could make it no. 1 in the world in this sector very soon" (pdf Gabon Magazine)

Legabon.org, March 2008

On 28 February the Council of Ministers approved the draft law authorising the Gabonese State to borrow from international organisations for public works: general earthworks, roads, water and electricity supply networks and the building of social housing.

Four loans for more than 180 billion CFA francs will be used to finance:

- The project of electrification of the northern periphery of Libreville, Cap Estérias and the Franceville/Andjogo/Okondja zone area. Two loans were signed with Caylon, the funding and investment bank of the Credit Agricole group, for an amount of 1.7 million euros (1.1 billion CFA francs) and 9.6 million euros (6.3 billion CFA francs).

- The building of social housing at Libreville: a loan contracted from the Export-Import Bank of India, for an amount of 14.5 million US dollars (6.5 billion CFA francs). The minister for Housing and Urban Development, Patrice Tonda, met the people in charge of the Indian Deep Group of Companies and CCPL, in February.

- Asphalting of the roads between Fougamou/Mouila, Leyou/Lastourville and Ndendé/Lebamba. This fourth loan was contracted with the African Development Bank (BAD).

For these work projects, the Gabonese State has launched a call for tenders for an amount of 92 million CFA francs

Find out more about the call for tenders.

Legabon.org, March 2008

The Gabonese government was delighted to have achieved the early repayment of 86% of its debt to the Paris Club.

The government has fully reimbursed the debt as it stood at January 2008, representing 752.3 billion CFA francs.

The Council of Ministers who met on 14 February, chaired by the chief of State, highly appreciated this initiative taken at the personal instruction of the President of the Republic, which made it possible to successfully introduce Gabon onto the Capital Markets. This was achieved in spite of the morose stock exchange context due to the “subprime” crisis. The exceptional results obtained by this operation now place Gabon firmly on the playing field of international investments.

"All these results are the consequence of the climate of peace and stability reigning on Gabonese territory, and, secondly, of the economic and financial reforms implemented under the impetus of President Omar Bongo Ondimba, to whom the Council wishes, in this circumstance, to pay a firmly deserved tribute. Thanks to these borrowings and to our own resources, the government has fully reimbursed the debt as it stood at January 2008, representing 752.3 billion CFA francs.

The early repayment of 86% of the debt to the Paris Club now allows our country to leave the supervision of this Club, to reinforce its international credit rating and prestige and from now on implement an active debt management policy.”

On this occasion, the Council thanked all the countries who supported Gabon in this operation, principally France, Great Britain, Belgium, the Netherlands, Switzerland, Spain, Italy and Brazil. It also expressed its special gratitude to France who granted an additional discount of 5% (approximately 50 million euros), in the form of debt conversion, to finance the project of sustainable development in the domains of the protection and development of the Gabonese forest. 

Legabon.org, March 2008